SPECIALIST

On an exchange , the member firm that is designated as the market maker (or dealer for a listed common stock ). Only one specialist can be designated for a given stock , but dealers may be specialists for several stocks. In contrast, there can be multiple market makers in the O.T.C. market . This member of a stock exchange who maintains a "fair and orderly market" in one or more securities. Major functions include executing limit orders on behalf of other exchange members for a portion of the floor broker's commission , and buying or selling for his own account to counteract temporary imbalances in supply and demand and thus prevent wide swings in stock prices .